Table 1. The basics of leveraging your intellectual property portfolio
From the following article
Leveraging your biotech intellectual property
Michael B Harlin
&
Kevin A O'Connor
Published online: 24 April 2008
doi:10.1038/bioe.2008.5
| Method | Advantages | Disadvantages |
|---|---|---|
| Out-licensing | Raises capital | Engenders fear of out-licensing too early |
| Is suitable for early-stage technology | Cedes some control over reputation and valuation of technology | |
| Narrows company focus | ||
| Cross-licensing | Removes blocking patents | Requires giving up exclusive rights |
| Can allow collaboration | Can allow competition | |
| Selling intellectual property (IP) or royalties owed on it | Raises short-term capital | Requires demonstrable financial return |
| Narrows company focus | Discounts value of IP | |
| Lending secured by IP | Makes use of IP, which may be company's most valuable asset | Interest rates obtained do not generally reflect IP value |
| Raises nondilutive capital | Risks losing IP upon default |